The Reserve Bank of India Friday rolled out "scheme of reconstruction", a revival plan for the crisis-ridden Yes Bank, which was placed on moratorium with withdrawal limit capped at Rs 50,000. The central bank today said the State Bank of India (SBI) has expressed willingness to invest in crisis-ridden Yes Bank.
Earlier today, RBI Governor Shaktikanta Das said Yes Bank resolution efforts are aimed at maintaining "stability and resilience" in the Indian financial sector and the difficulties will be overcome "very swiftly." He said the 30-day moratorium deadline is an "outer limit" and reiterated that the interests of the depositors will be "fully protected".
'Scheme of Reconstruction' for Yes: The draft
- The Authorised Capital shall stand altered to Rs 5,000 crore and number of equity shares will stand altered to Rs 2,400 crore of Rs 2 each aggregating to Rs 4,800 crore.
- The investor bank shall agree to invest in the equity of the reconstructed bank to the extent that post-infusion it holds 49 percent shareholding in the reconstructed bank at a price not less than Rs 10.
- The investor bank shall not reduce its holding below 26 percent before completion of three years from the date of the infusion of the capital.
-
All employees of the reconstructed Yes Bank will continue with the same pay for at least one year.
-
A new board will be constituted.
-
The plan proposed that Board of Directors of the Reconstructed Bank will have the freedom to discontinue the services of the Key Managerial Personnel (KMPs) at any point of time after following the due procedure.
-
The investor bank shall have two nominee directors on the Board of the reconstructed bank.
-
RBI may appoint additional directors. It will be open to the Board of directors of Yes Bank to co-opt more directors to it.
ALSO READ | Yes Bank shares tank over 55 per cent, Sensex down by almost 900 points
ALSO READ | Nippon India Mutual Fund marks down its investment in Yes Bank to zero
Latest Business News
